In a significant development in the edtech sector, Alakh Pandey-led PhysicsWallah (PW) is reportedly in advanced discussions to acquire Drishti IAS, the UPSC coaching institute founded by Vikas Divyakirti, for a staggering ₹2,500 crore. According to a report by Entrackr, if finalized, this would be the largest acquisition in the Indian edtech space in recent years.
A Strategic Move Amid PhysicsWallah’s IPO Plans
The potential acquisition comes at a crucial time as PhysicsWallah prepares for an Initial Public Offering (IPO) to raise $500 million. The acquisition of Drishti IAS is expected to strengthen PW’s position in the competitive exam coaching market, particularly in the highly sought-after UPSC preparation segment.
Drishti IAS is a well-established name in civil services coaching, offering courses in both Hindi and English mediums. Integrating Drishti IAS into PW’s ecosystem would enable the edtech unicorn to expand its footprint beyond engineering and medical entrance coaching into UPSC and other government exam preparations.
Largest Edtech Acquisition in Recent Years
If the deal materializes, it will mark one of the most significant consolidation moves in India’s edtech industry. The past few years have seen a slowdown in large-scale acquisitions, with major players focusing on profitability amid funding constraints. The ₹2,500 crore acquisition would be a game-changer, highlighting PhysicsWallah’s aggressive expansion strategy.
According to industry reports, the Indian edtech market is expected to grow to $10 billion by 2025, with strong demand for online and hybrid coaching models. (Source: RedSeer)
What This Means for the Edtech Industry
With many edtech firms struggling post-pandemic due to reduced funding and increased operational costs, PW’s move signals a new phase of consolidation in the sector. Unlike its competitors, PhysicsWallah has remained profitable and continues to grow organically, positioning itself as a strong contender in the evolving education landscape.
If finalized, this acquisition could:
- Expand PW’s offerings in UPSC coaching and government exam preparation.
- Strengthen its hybrid learning model by leveraging Drishti IAS’s offline presence.
- Boost investor confidence ahead of PhysicsWallah’s $500 million IPO.
Final Thoughts
As PhysicsWallah gears up for its public listing, this acquisition could be a strategic masterstroke, further solidifying its dominance in India’s competitive edtech industry. With the deal expected to close soon, all eyes are on how this move reshapes the edtech landscape and impacts the future of online and offline coaching integration...
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Last Updated on Tuesday, April 1, 2025 5:07 pm by Aarti kumari
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